The construction site is located on the premises of Lukoil’s Volgograd refinery and covers an area of 27,900 square meters. Production is expected to commence in 2026.

“The launch of this facility will contribute to the market’s supply of high-quality lithium greases, metalworking fluids and specialty products,” the company said in a Feb. 13 news release. Lukoil noted that the new facilities will employ 200 people.

LLK is Russia’s largest lubricant marketer, accounting for approximately 40% of the nation’s 1.7 million t/y lube demand. The Volgograd refinery’s base oil plant can produce up to 270,000 t/y of API Group I oils, 220,000 t/y of Group II and 30,000 tons of Group III.

Volgograd is also home to Intesmo, a 50-50 grease production joint venture between Lukoil and Russian Railways, the state-owned rail transportation monopoly, with a capacity of 30,000 t/y.

Lukoil also owns a controlling 50% stake in AddiTech, a lube additives joint venture in Novopolotsk, Belarus. The local oil company Naftan holds 47% of the joint venture, while the Novopolotsk government holds 3% of the shares.

Several Russian and Asian lubricant companies have announced expansion plans in the country to fill the supply gaps left by Western marketers – such as Shell, ExxonMobil, TotalEnergies, and BP – all of which exited the market to protest Moscow’s invasion of Ukraine in 2022. They were followed by the four leading international lubricant additives suppliers – Infineum, Lubrizol, Chevron Oronite and Afton Chemical.

In pre-war 2021, for example, Shell held 14%-15% of the Russian finished lubricant demand, according to industry sources.